Dan's Biz Bookshelf: 'Revenge of the Tipping Point'
Marcy's Musings: Engineering Economics
Punching Out: Should You Sell Your Company to a Private Equity Firm?
Cost Pressures Receding as Industry Expects Some Sector Growth in 2023
May 2, 2023 | IPCEstimated reading time: 1 minute
Per IPC’s April 2023 Global Sentiment of the Electronics Supply Chain Report, last month delivered a mixed bag of industry sentiment: cost pressures are receding; industry demand appears to be slowing; and industry expects growth in some sectors.
Survey results show:
- 54 percent of respondents reported that labor and material costs are rising, but the number of companies experiencing rising costs continues to decline.
- The Orders Index slipped to 105. While this is still in expansionary territory, it is the lowest it has been since the start of the survey.
- Industry believes the military sector will grow 16 percent on average this year, followed by the aerospace sector and the communications sector which are both expected to grow by roughly 11 percent. The medical sector is expected to rise 10 percent.
- The automotive sector and industrial electronics sector are both expected to rise 5.6 percent. The consumer electronics sector is expected to decline 3 percent and the computer sector is expected to decline 7 percent in 2023.
“Over the next six months, electronics manufacturers expect to see continued increase in both labor and material costs,” said Shawn DuBravac, IPC chief economist. “Meanwhile, backlogs, ease of recruitment, and profit margins are expected to contract.”
For the report, IPC surveyed hundreds of companies from around the world, including a wide range of company sizes representing the full electronics manufacturing value chain. View full report.
Share on:
Suggested Items
IPC Celebrates National Apprenticeship Week with a Focus on Electronics Manufacturing Excellence
11/19/2024 | IPCIPC, a leading global electronics industry association and source for industry standards, training and advocacy, is proud to announce its participation in National Apprenticeship Week, scheduled for November 17-23, 2024.
IPC Introduces First Standard for In-Mold Electronics
11/18/2024 | IPCIPC announces the release of IPC-8401, Guidelines for In-Mold Electronics. IPC-8401 addresses in-mold electronics (IME) technology, providing industry consensus on guidelines for manufacturing processes, part structures, material selection, and production test methods to integrate printed electronics and components into 3D smart structures.
Disruptive Innovation and Generative AI Inventor, Kevin Surace, to Keynote IPC APEX EXPO 2025
11/15/2024 | IPCEach year, IPC APEX EXPO features industry’s most dynamic, innovative minds to deliver keynote presentations that are both educational and entertaining. IPC APEX EXPO 2025 will feature Kevin Surace, an internationally renowned futurist and generative artificial intelligence (AI) innovator.
Keysight Providing Software to Enable Researchers through the Microelectronics Commons
11/15/2024 | Keysight TechnologiesKeysight Technologies, Inc. announced it has reached an agreement to provide its electronic design automation (EDA) software to six of the eight hubs participating in the Microelectronics Commons (Commons).
Neways Partners with MilDef for the Production of Advanced Electronic Components
11/15/2024 | NewaysNeways, the global innovator in mission-critical technology for leading semicon, connectivity and smart mobility companies, announces it has entered into a partnership with MilDef, the developer of world-leading tactical IT solutions, products and systems, made to perform in the toughest conditions.